Euro stablecoins seen hitting €1.1B by 2030

Euro-pegged stablecoins are expected to grow from about €650 million to €1.1 billion by 2030 as major European banks prepare to issue digital tokens, according to a new report from S&P Global Ratings.

The researchers said growth will be driven primarily by tokenisation of real-world assets rather than retail payments, as institutions increasingly use stablecoins to settle blockchain-based transactions.

“Stablecoins’ emergence and growth presents established banks with both potential revenue opportunities and a threat to their traditional roles as intermediaries,”

S&P Global Ratings said in its report.

The report noted that large banks are now embracing stablecoins after clearer crypto regulation came into force, encouraging lenders, companies and governments to explore issuing euro-denominated tokens.

Euro stablecoins remain small compared with the $305 billion global stablecoin market dominated by dollar-backed tokens, but firms such as PayPal, BlackRock and Fidelity have already launched related products.

S&P Global said banks are attracted by fee income from institutional clients and see stablecoins as a foundation for tokenised markets, where the US currently leads and Europe is positioned as a “fast follower”.

Regulatory clarity under the European Union’s Markets in Crypto-Assets framework has been key, with 11 European banks already working on a joint euro stablecoin expected to launch this year.